NMI Holdings, the parent company of National MI, posted net income of $5.5 million, or $0.09 per share, for the first quarter of 2017, significantly up from a net loss of $3.9 million, or $0.07 per share, for the first quarter of 2016.
In addition, the company recorded primary insurance-in-force of $34.8 billion, up 8% from $32.2 billion at the prior quarter end and up from $18.6 billion for the same quarter a year ago,
Premiums earned in the first quarter of 2017 were up 68% over premium revenue of $19.8 million in the same quarter a year ago, which included $2.3 million related to cancellations.
Meanwhile, the new insurance written mix hit 81% monthly premium product, which compares with 75% in the prior quarter and 59% in the first quarter of 2016.
"We had another great quarter at National MI, achieving new records in the important metrics of insurance in force, premiums earned, master policies and customers generating new insurance written,” said Bradley Shuster, chairman and CEO of National MI.
“Also, subsequent to the end of the quarter, we executed an Insurance-Linked Notes transaction that enhances National MI's financial strength by providing a layer of protection against adverse losses, while at the same time providing expected additional writing capacity under PMIERs of approximately $200 million,” continued Shuster. “Our estimated after-tax cost of this coverage and capital relief is approximately 3%."
